Eyeing development in the industry through 4 new projects, the Minister of State, IT said that India’s semiconductor scenario will hit $109 billion by 2030 in the Lok Sabha.
On Wednesday, Jitin Prasada, Minister of State for Electronics and IT, claimed at the lower house of the parliament that India’s semiconductor industry is poised to more than double, reaching $109 billion by 2030, up from $38 billion in 2023.
In response to a Lok Sabha query, Prasad stated that the government has approved four semiconductor projects under the India Semiconductor Mission, with a total proposed investment of Rs 1.48 trillion. Besides, the government has authorised the establishment of 13 semiconductor design companies in the country.
As per reports, this implies a 16% compound annual growth rate for the industry. A crucial element of this growth will be the new semiconductor fab, established by Tata Electronics in collaboration with Taiwan’s PSMC in Dholera, Gujarat.
The government expects this facility to become operational by 2027 and produce 3 billion chips annually. The total investment, including incentives from both the Centre and the State, is $10.9 billion.
Prasada also added that efforts are ongoing to modernise the government-owned semiconductor laboratory in Mohali, which could contribute further to this achievement.
Under the India Semiconductor Mission, the government offers fiscal support covering 50% of the costs for building chip manufacturing, packaging, or testing units on a pari-passu basis.
Additionally, the product design-linked incentive scheme provides up to 50% fiscal support for eligible expenses, capped at Rs 15 crore per application.
Last week, Prasada informed the Lok Sabha that the scheme to promote electronics components and semiconductor manufacturing has attracted an additional investment of Rs 8,803.14 crore, resulting in production valued at Rs 18,083.55 crore as of June 30 this year.
